California 25% Rent Reduction Bill Proposed.

Please understand that I am certainly not an attorney and before taking any action on any of this information, one should definitely consult with their own legal and financial advisors.

California 25% Rent Reduction Bill

As of today, here is just one paragraph directly from the proposed bill that talks about the 25% rent reduction: The bill would require the court, if it determines that the tenant’s inability to stay current on the rent is the result of increased costs in household necessities or decreased household earnings attributable to the COVID-19 virus, to make an order for the tenant to remain in possession, to reduce the rent for the property by 25% for the next year, and to require the tenant to make monthly payments to the landlord beginning in the next calendar month in accordance with certain terms.

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This certainly seems to me to be another leftist push to destroy all privately owned residential real estate in the state of California. The vast majority of rental properties in California return anywhere from 5 to 8% to the owners after all expenses are taken into consideration. So, to have a blanket 25% reduction in rent will mean that rental owners in California will be suffering a huge loss while this provision is in place. If you want to see the latest version of this draft bill, here is the direct link:

Here is a like to the proposed bill: California rent reduction bill

Here is the hyperlink to my prior post on this topic:  California Armageddon for Landlords

Here is the hyperlink to another of my prior posts: Coronavirus & San Diego Real Estate

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